3-month notice made mandatory before firing employees

GANGTOK, 03 May: Henceforth, all power projects, industrial establishments, including pharmaceutical companies, public and private sector companies undertakings etc. will have to compulsorily serve a three-month notice “in writing” before retrenching any of their employee.
A Labour Department Notification dated 24 May informs that the State Government has felt “expedient to adopt procedures for retrenchment of workers engaged in these establishments with immediate effect.”
According to the Notification, “Three months prior notice to be served in writing by the employers indicating reasons for retrenchment and retrench the workers after expiry of the said period of retrench, the workers with wages of three months in lieu of such notice.”
In addition to the above, the Notification adds, “At the time of retrenchment, compensation which shall be equivalent to fifteen days average pay for every completed year of continuous service or any part thereof in excess of six months, shall be paid to the workers.”